We all know that with adulthood, come certain responsibilities. One major one is to get your finances in order. The common basic thought is that it all start with a defined budget. To some extent, that is true but real, long term financial stability involves more. From managing debt and credit to planning your income and expenses allocations, to investing, getting your finances in order does not happen randomly or by chance.
Below are 6 top tips to get you started on the journey to financial stability
– Set Yourself A Budget for Each Month
One of the best ways to keep track of everything that you’re spending is to create a budget that you use on a daily, weekly or monthly basis. I am a proponent of the monthly budget, a tool that allows you to plan and stay consistent over an extended period. To stay on top of your finances, you need to make note of all your incomings and your expenses, adjusting things as needed. Not only will this give you a clear view of your disposable income each month, but it will also give you an idea of where you can cut back to add to your savings. For tips and tricks when it comes to creating a budget, you can visit this site here.
– Set up a tracking method
I recently started using Mint.com, an app that facilitate budget planning by syncing directly to your bank accounts. However, many consumers are hesitant to share their banking information and if you are in that category, keeping track of your finances in a spreadsheet is your best option. Don’t worry about building your own budget, there are tools available to get you a head start. Starting today, you can use this handy template here.
– Be creative with your extra income
If you’re looking to add to your savings and increase the amount of money you’re earning to regain control of your finances, you may want to consider having additional sources of income beside your regular 9 to 5. Whether that’s taking on extra hours or starting your own business, any extra income you can bring in will be incredibly beneficial when trying to stay on top of your finances.
– Make Sure Your Debt Is Your Priority
Debt can add stress to our lives. Most lenders will not forgive your loans unless in extreme cases, so the choice to pay or not is inexistent. At some point, we must reimburse what we have borrowed. It’s important that you include your debt payments as a priority in your budget, paying it in a timely fashion to keep your credit score in good shape. If you’re having trouble paying your debts, you can visit this guide here.
– Use Lending Wisely
Although this may not be your first choice, taking out a loan can be for some people a way to alleviate the burden of debt. In fact, when used wisely, a combining loan can leave you with just one monthly sum to focus on. I emphasize ‘wisely’ because a bad decision here can put you in a deeper hole. There are countless companies out there offering help but be careful and read the fine prints. Whether you take out a loan like the ones at GetCash.com or you opt for something completely different, this could be a great way to finally get on top of your finances. Before you start considering loans, make sure you’re financially viable to pay them back.
– Focus on The Essentials
Finally, it’s important that you’re focusing on the essentials. It is tempting to spend all your disposable income as soon as you get it on all the cool items you see your friends and coworkers using but cutting down on the non-essential items you buy can significantly help your financial standing. Whether that means cutting out your $7 daily cup of coffee and your $15 daily lunch or switching to store-brand products, you’ll be surprised how much of a difference it can make.
Are you looking to improve your financial standing? What changes can you make to your lifestyle? Let me know in the comments section below.
Money-Smart Millennials 